The Monetary Authority of Singapore (MAS), Singapore’s central bank and financial regulatory authority, has launched a public consultation on proposed changes to the Payment Services Act 2019, aimed at bringing its regulatory framework for stablecoins into force.
The proposed legislative amendments will establish the criteria stablecoin issuers must meet to become MAS-regulated, along with the safeguards required to maintain value stability and protect users.
Under the MAS Single-Currency Stablecoin (MAS-SCS) framework, only issuers holding a licence under the scheme will be permitted to identify themselves as licensed MAS-regulated stablecoin issuers and market their tokens as “MAS-regulated stablecoins”.
The measure is designed to help consumers tell apart properly regulated stablecoins from other digital assets that claim stability without being subject to MAS oversight. Any stablecoins that fall outside MAS regulation will instead be classified as Digital Payment Tokens (DPTs) and made subject to the same consumer protection rules that already govern DPTs.
The consultation paper invites input on the legislative amendments needed to bring the MAS-SCS framework into effect, covering core requirements such as value stability, capital, redemption at par and disclosure. MAS is also gathering views on several further policy areas, shaped by recent international developments and best practice in stablecoin oversight.
Among the proposals is a plan to permit stablecoins jointly issued by a Singapore-based issuer and an overseas partner to fall under the MAS-SCS framework and carry the “MAS-regulated stablecoins” label, so long as associated risks are adequately managed.
MAS is also considering recognising a limited number of foreign-issued stablecoins that are overseen under broadly equivalent regulatory regimes abroad, in acknowledgement of cross-border wholesale applications for the tokens.
To protect financial stability, MAS has put forward additional measures, including a ban on paying interest on MAS-regulated stablecoins, mandatory stress testing, and a requirement for issuers to maintain recovery and orderly wind-down plans.
On the consumer side, MAS proposes safeguards in line with those already required of existing Payment Services Act licensees, including a rule that customer funds be protected before any stablecoins are issued against them.
MAS Deputy Managing Director (Financial Supervision) Ms Ho Hern Shin said, “MAS’ proposed legislative amendments will give effect to a stablecoin framework that promotes responsible financial innovation. The framework will provide clear regulatory guardrails for stablecoins that meet high standards of value stability and governance. This is important as asset tokenisation gains traction. Trusted and well-regulated stablecoins can serve as a credible settlement asset in tokenised financial markets, while mitigating risks to users and the broader financial system.”
Copyright © 2026 RegTech Analyst
Copyright © 2026 RegTech Analyst
